Inside the battle to make the lethargic public sector more productive
The TelegraphJeremy Hunt wants to crack Britain’s public sector productivity problem in order to pave the way for pre-election tax cuts. The Chancellor has vowed to launch the “most ambitious public sector productivity review ever” to find out why the state is spending more for less. Ben Zaranko of the Institute for Fiscal Studies says: “We’ve poured lots more resources particularly into the health service, but the outputs that we’re getting from our public services haven’t increased in the same way.” The pressures of an ageing population, a soaring tax-burden and growing calls for tax cuts have put waning productivity on the top of the Chancellor’s agenda. Since 1997, annual output per hour worked in the NHS, education, civil service and other public administration has actually declined by 13pc in the public sector, according to Office for National Statistics data, while the private sector’s output has grown by 38pc.
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